Hello,
I work for company A who has acquired several businesses through stock purchase, in different states, same business type and will continue to acquire more over the next few years. Each acquisition is maintaining their own EIN. We own 80% to 100% of each acquisition and we consider them part of our control group which allows them to participate in our health and welfare plans.
I have been asked for financial reasons to create multiple options for benefit offerings that may have differences in PTO days, 401k, health plans and other items for each acquisitions employees - none of the acquisitions has less than 60 employees.
Example:
Plan 1 would have full health plan offering, 22 PTO Days, SH 401K w% Match
Plan 2 would offer full health plan offering, 19 PTO days, 401K no match
Plan 3 would offer HMO health plan options only, 18 PTO Days, 401k no match.
My dilemma is around the 401k options - Company A (The acquirer) has a single employer SH 401K plan. Because we consider these acquisitions a part of our control group I do not believe we can shift our SH 401k plan to a multiple employer plan because we are related businesses.
Company A has a safe harbor plan with employer match and company A does not want to offer 401k employer match in all regions for financial reasons and because the acquisitions either have no 401k and if they do have a 401k they do not match
If you have suggestions for how I might design 401k options to fit this scenario I would be grateful for the ideas.
